VA Lenders’ Compliance with CFPB’s Ability-to-Repay and Qualified Mortgage Rules. Until the Department of Veterans Affairs’ rule on ATR/QM is in place, all VA lenders must comply with the requirements of the Truth in Lending Act, as established by the Consumer Financial Protection Bureau’s ATR/QM rule, according to a recent agency guideline. VA will continue to guarantee all loans made in compliance with existing VA requirements, regardless of their QM status, the agency clarified. It urged lenders to refer to the CFPB guidance to ensure all their VA loans are ...
Storm clouds quickly gathered as Rep. Steve Pearce, R-NM, complained that the bureau’s QM rule and restrictions on high-cost loans would pretty much exclude manufactured housing – and then accused Cordray of deliberately trying to squash lower-income families.
The Federal Housing Finance Agency’s new “servicing project” will take a close look at how large-scale packages of mortgage-servicing rights are sold and transferred, but will also delve into what mortgage bankers thought was a dead issue: minimum servicing fees paid to processors. “You might say that FHFA is tackling the whole servicing arena in a big way,” said one mortgage consultant who has been briefed on the agency’s plans. The regulator’s sudden interest in transfers comes...
Increased compliance costs in recent years have done little to dampen demand for mortgage servicing rights, according to industry analysts. “The amount of capital has far outstripped the available supply,” said Dashiell Robinson, a managing director at Wells Fargo Securities, during last week’s ABS Vegas conference sponsored by the Structured Finance Industry Group and Information Management Network. William Roehrenbeck, chairman and CEO of Arvest Mortgage Company, said...
It’s been several years since a top-10 ranked lender changed hands, but it could happen this year with speculation falling on PHH Mortgage and Flagstar Bancorp. Both firms own large servicing portfolios but have sold servicing “strips” while retaining a subservicing relationship with the consumer. Investment banking sources and competitors familiar with the two say a sale of either is...
One of the complications of the federal government’s takeover of Fannie Mae and Freddie Mac has been the injection of uncertainty over whether the two government-sponsored enterprises can foreclose by advertisement due to Uncle Sam’s control of the companies. That has bred some novel legal arguments against the GSEs’ ability in this regard, but they have met with mixed results thus far. “Over the past several months, one of the newer arguments challenging foreclosure by borrowers is...
In supplemental materials to his speech, President Obama referenced the GSEs' “failed business model,” adding that taxpayers should never again be “on the hook for bad loans and bailouts.”
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